Index
Milliman Hedge Cost Index July 2024
Milliman reports 2 basis points increase in Hedge Cost Index for VA and 1 basis point increase in RILA guarantees in July.
By Xiaohong Mo and Daren Lockwood
05 August 2024
As of end of July 2024, the expected hedge cost is estimated to be 125 bps for a hypothetical lifetime withdrawal benefit (GLWB) on variable annuities (VA) and 121 bps for registered index-linked annuities (RILA), up 2 basis points and up 1 basis points respectively from the previous month, driven by a decrease in long-term interest rates. The Index Methodology provides additional details about the assumptions and methodologies underlying the Milliman Hedge Cost Index™ (MHCI).